What this tool does
Computes the ad spend needed per conversion. Enter spend in the first field and conversions in the second.
How to use it
- Fix the period and campaign scope.
- Enter ad spend for that scope in the first field.
- Enter conversions for the same scope in the second.
- Run it to get cost per acquisition.
Worked example
Spend 100 with 200 conversions gives a CPA of 0.5. Spend 200 with 100 conversions gives 2.
Calculation method
Ratio
a/b*1Frequently asked questions
- Is CPA the same as CAC?
- Not necessarily. CPA usually divides ad spend alone by conversions, while CAC is broader and includes sales payroll and tooling.
- Is a lower CPA always better?
- Only if you know what a conversion is worth. The contribution margin per conversion must exceed CPA. Read it with the lifetime value calculator.
What this tool does not cover
It says nothing about conversion quality. Cheap conversions that churn quickly can lose money even at a low CPA.